HM Revenue & Customs will produce guidance on classifications of tangible, moveable property for Sipp investments after providers were wrongly told to refer to the capital gains tax manual, Money Marketing understands.
Hornbuckle Mitchell says a senior HMRC civil servant advised them to refer to CGT rules when considering whether or not an asset is tangible, moveable property Director Mary Stewart says: “HMRC says it would rely on the CGT manual and that if the CGT office had determined the case, HMRC would not re-test it.”
But Money Marketing und-erstands that officials have sought to distance themselves from the advice.
A source says following an “avalanche” of enquiries from providers hoping to put renewable assets into a Sipp, HMRC will produce guidance on how to define whether an asset is tangible, moveable property. However, the guidance is expected to take “months” to produce.
A HMRC spokesman refuses to confirm whether providers had been told to refer to the CGT manual for Sipp investments.
There is a lot of confusion over HMRC’s stance towards putting certain assets, such as wind turbines and solar panels, into a pension product.
If classed as TMP, the assets would be subject to a penal tax charge of 40 per cent.